Top 10 African Countries With Highest Debt Owed To China

China has emerged as a significant trade partner and creditor for various African nations. However, there are concerns raised by critics regarding China's practice of providing potentially unsustainable loans to these developing countries. Between 2012 and 2017, Chinese loans to sub-Saharan African nations surged by a factor of ten, surpassing $10 billion annually.

Approximately 20 percent of the external debt carried by African governments is attributed to China, as noted by the Jubilee Debt Campaign, an advocacy organization focused on alleviating the debt burden of developing nations. This rise in indebtedness is a substantial shift, with around 40 percent of African countries currently grappling with debt distress, in contrast to 2013 when only 20 percent were considered to be at high risk.

Below is a list of ten African nations entangled in debt obligations to China. This underscores the growing financial entwinement between China and various African economies. It's essential for stakeholders to carefully monitor and manage these financial relationships to ensure the long-term stability and sustainability of these nations' economic trajectories.

African Countries With Highest Debt Owed To China

• The Democratic Republic of Congo
• Ghana
• Nigeria
• Cameroon
• Zambia
• Sudan
• Côte' d'Ivoire 
• Kenya
• Entopia
• Angola

1. The Democratic Republic of Congo

The Democratic Republic of Congo stands as a prominent example of China's debt involvement in resource-endowed African nations. In this instance, the country holds an approximate debt of $3.4 billion owed to China. The Democratic Republic of Congo has entered into agreements with China where it exchanges its mineral wealth, encompassing valuable resources like diamonds, gold, copper, cobalt, timber, and oil, in return for financial loans. This financial arrangement underscores the strategic importance of resource-rich nations in China's African lending practices.

2. Ghana

Ghana, a rapidly expanding economy in West Africa, holds an estimated debt of $3.5 billion owed to China. Notably, Ghana has demonstrated remarkable growth, ranging between 6 and 8 percent in recent years.

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In a significant development in November 2019, China unveiled plans to fund infrastructure projects including rail, road, and bridge networks in Ghana, with an investment totaling $2 billion. In return, China secured access to 5 percent of Ghana's bauxite reserves, a critical source of aluminum, as reported by CNBC. This exchange highlights the strategic economic partnerships being forged between China and dynamic African economies like Ghana, where mutual interests in infrastructure development and resource access converge.

3. Nigeria

As of March 2019, Nigeria's external debt summary, released by the Debt Management Office, indicates an indebtedness to China of approximately $2.6 billion. Strikingly, out of Nigeria's total debt portfolio of $81 billion, China emerges as the largest creditor, surpassing all other debtor nations, as reported by Bloomberg.

This underscores the significant financial relationship between Nigeria and China, signifying China's pivotal role in Nigeria's external debt landscape.

4. Cameroon

Cameroon's debt to China is substantial, reaching nearly $5.7 billion, as indicated by data from the Autonomous Sinking Fund, the entity responsible for overseeing the country's external debt. Notably, a portion of this debt, approximately $78 million, was forgiven in 2019.

This sum was originally due in 2018, but Cameroon encountered difficulties in meeting the payment obligation. This development highlights the complexities and challenges faced by countries in managing their external financial commitments, especially in cases where economic circumstances may not align with scheduled payments.

5. Zambia

Zambia is among the African countries heavily indebted to China due to the substantial loans provided for infrastructure projects under the Belt and Road initiative. In 2018, Zambia's external debt, constituting around 35 percent of its GDP, surged to nearly $10 billion, a stark contrast to the $1.9 billion recorded in 2011. A significant portion of this debt, approximately $6 billion, is attributed to China.

Given Zambia's status as Africa's second-largest copper producer, the potential consequences of defaulting on these loans are significant. There's a risk of Zambia potentially forfeiting state-owned assets, including critical entities like the power producer Zesco, to Chinese ownership. This underscores the critical importance of managing debt dynamics and ensuring sustainable financial arrangements for the economic stability and sovereignty of nations like Zambia.

6. Sudan

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China has played a substantial role in Sudan's economic landscape, financing endeavors in oil extraction and supporting significant developmental projects. In 2018, Sudan's indebtedness to China was assessed at around $10 billion. This amount constituted approximately one-fifth of Sudan's total foreign debt, which was estimated at $53 billion.

This underscores the considerable financial involvement and influence that China wields in Sudan's economic affairs, emphasizing the importance of managing these financial relationships judiciously to ensure the long-term economic stability and prosperity of the nation. 

7. Cote' d'Ivoire

China is a great creditor for Côte d’Ivoire, providing loans totaling $3.6 billion since 2000. This figure ranks as the third-largest commitment from China in the West African region. Nevertheless, the projects funded by China in Côte d’Ivoire have generally demonstrated proportionality, addressed genuine business needs, and yielded quantifiable economic benefits. This helps account for why China's involvement in Côte d’Ivoire has not garnered the same level of scrutiny and criticism seen in other national contexts.

8. Kenya

Kenya holds a substantial debt with China, estimated at approximately $7.9 billion, largely attributed to the funding of extensive infrastructure projects in the East African nation. Concerns have been raised over China's lending practices, with criticism directed towards the reportedly aggressive terms that disproportionately favor the Chinese government. A notable instance is the leaked contract between Kenya and China for the construction of the Mombasa-Nairobi Standard Gauge railway project.

According to this contract, Kenya could potentially cede control of the Mombasa port to the Chinese government if the National Railway Corporation defaults on a payment of $2.27 billion. This exemplifies the significant stakes involved in managing debts with foreign entities and underscores the need for careful negotiation and financial planning to safeguard a nation's economic interests.

9. Ethiopia

China plays a significant role in Ethiopia's external debt, accounting for nearly half of it. According to data from the Johns Hopkins University School of Advanced International Studies, China has provided loans amounting to at least $13.7 billion to Ethiopia from 2000 to 2018.

These funds have been instrumental in financing major infrastructure projects, including a $3.4 billion railway connecting Ethiopia to Djibouti, the construction of Ethiopia's inaugural six-lane highway, the development of a metro system, and the creation of several skyscrapers in the capital, Addis Ababa. This substantial financial backing underscores the depth of the economic relationship between China and Ethiopia, reflecting the critical role that Chinese investment and lending have played in Ethiopia's infrastructural development and economic growth.

10. Angola

Angola's debt to China is considerable, currently amounting to $22.8 billion. Recent investments from China in Angola encompass diverse sectors, including the establishment of a fishing vessel assembly plant, an aluminum factory, and a brewery, as reported by Bloomberg. Despite being the second-largest oil producer in Africa, Angola allocates a significant portion of its valuable oil resources toward servicing its debts to China.

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This dynamic highlights the intricate balance between resource utilization and debt management for nations like Angola, whose economic prosperity is closely intertwined with their financial commitments to external partners.